Should I file for Social Security in 2022 to get the COLA for 2023?

There’s been a lot of coverage around the historically high cost-of-living-adjustment, or COLA, for Social Security benefits for 2023. One matter that has been confusing people is just how this increase affects their benefit — do they have to be receiving a benefit in order to get the COLA?I turn 70 in March 2023. I’ll receive the full 32% increase in delayed retirement credits. Social Security benefits for all current recipients are going to increase 8.7% in 2023.

It is not necessary to apply for benefits prior to the beginning of the new year to receive the increase for COLA. This is due to the method that the Social Security Administration uses to calculate your benefit, regardless of when you file for the benefit.As noted in Social Security’s POMS RS 00605.

Read: Opinion: Plan for the worst-case scenario of lower expected Social Security payments by finding income elsewhere So, the only thing that happens to the writer if he does file for benefits prior to the end of the year is that he’ll permanently reduce his benefit by 2.67%. Granted, he will receive a few months’ additional checks during that time, so the break-even point probably goes out quite a few years. But since he’s waited this long, seems like a shame to file early and take the lower benefit.

Now, if you’ve already pulled the trigger and filed early because you thought you had to in order to receive the COLA, you have an option available to you. You could use the one-time “do over” option, which allows you to withdraw your application for benefits and repay any benefits received, resetting your record as if you had never filed before. You can do this once in your lifetime, and you must do it within 12 months of your initial filing for benefits.

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